Dollar to Naira Exchange Rate Today: Black Market and CBN Rates – Wednesday, December 4, 2024.....Read Full Article>>

For Nigerians involved in trade, travel, or investment, keeping up with the latest Dollar to Naira exchange rate black market is essential.

This article provides the current Dollar to Naira exchange rate black market and the official Central Bank of Nigeria (CBN) channels, along with insights into rate fluctuations and alternative platforms for currency exchange.

Dollar to Naira Black Market Exchange Rate Yesterday

According to data obtained from Bureau De Change Operators (BDCs), the black market dollar to Naira rate on Tuesday, December 3, 2024, closed at ₦1,750 per US dollar.

Dollar to Naira Black Market Rate for Today, December 4, 2024

In the black market, the Dollar to Naira exchange rate often reflects real-time demand and supply, making it an essential metric for those outside formal banking channels. As of today:

• Buying Rate: ₦1,730
• Selling Rate: ₦1,735

CBN Official Dollar to Naira Exchange Rate

The official rate from the CBN is typically lower than the black market dollar to Naira rate but is limited to certain types of transactions, such as government-approved imports and formal business operations. The official exchange rate today is:

• Buying Rate: ₦1,667
• Selling Rate: ₦1,668

Alternative Platforms for Dollar to Naira Exchange Rates

Several online platforms, including Geegpay and Grey, also offer competitive exchange rates and serve as trusted alternatives to the traditional black market dollar to Naira:

• Geegpay Rates:
  • USD: Buying at ₦1,701, Selling at ₦1,755
  • GBP: Buying at ₦2,120, Selling at ₦2,127
  • EUR: Buying at ₦1,798.03, Selling at ₦1,800.55
• Grey Exchange Rates:
  • USD: Buying at ₦1,710, Selling at ₦1,750
  • GBP: Buying at ₦2,102, Selling at ₦2,203
  • EUR: Buying at ₦1,845.03, Selling at ₦1,852

These platforms are regulated and widely used in Nigeria, providing reliable access to foreign exchange without the volatility often seen in the black market dollar to Naira.

Historical Context: Rising Dollar to Naira Exchange Rate

Over the past year, the Dollar to Naira exchange rate black market has experienced considerable volatility. In October 2023, the black market dollar to Naira rate was approximately ₦900 per dollar. Since then, it has nearly doubled, driven by a combination of factors such as inflation, global oil price fluctuations, and foreign currency supply issues in Nigeria.

Why Nigerians Use the Black Market for Dollar Exchange

The black market, or parallel market, allows for easier access to foreign currency without government-imposed restrictions. Major reasons include:

• Favorable Rates: Higher exchange rates often mean more Naira for each Dollar exchanged.
• Accessibility: It is often simpler to access dollars in the black market than through formal banks, which may limit availability.

Latest Forex News in Nigeria (December 4, 2024)

Here are some of the latest updates on the Forex market in Nigeria as of December 4, 2024:

Latest Forex News in Nigeria (December 4, 2024)

Forex Turnover in NAFEM Rises 61% to $43bn

The volume of dollar traded in the Nigerian Foreign Exchange Market (NAFEM) rose by 61.9% to $43.09 billion in the first eleven months of 2024, compared to $26.6 billion in the same period last year. This increase reflects a significant boost in market activity, despite mixed performance of the naira across different segments.

CBN Overhauls FX Market Rules

The Central Bank of Nigeria (CBN) has released revised guidelines for the Nigeria Foreign Exchange Market (NFEM), consolidating all FX windows into a single framework and introducing stricter compliance and transparency measures. This move aims to address inefficiencies and create a more transparent, well-regulated system.

Naira Shows Mixed Performance

In November, the naira appreciated by N2.8 or 0.16% to N1,672.69 per dollar in the NAFEM, but depreciated by N10 or 0.5% in the parallel market. The margin between the two rates widened to N72.31 per dollar.

IMF Forecasts Record Fall in Nigeria’s Foreign Reserves

The International Monetary Fund (IMF) has predicted a record fall in Nigeria’s foreign reserves, estimating they may drop to $24 billion in 2024. This forecast indicates potential forex challenges for Nigeria’s economy.

Understanding the Difference Between Black Market and CBN Rates

The black market dollar to Naira rate generally runs higher than the CBN rate due to limited official access to dollars, which drives up demand in the parallel market. The CBN rate is regulated, targeting approved business transactions and some personal remittances.

FAQs on Dollar to Naira Exchange Rates

Why is there a difference between CBN and black market rates?

• The black market dollar to Naira rate reflects real-time demand and supply fluctuations, whereas the CBN rate is regulated to control exchange for approved uses.

FAQs on Dollar to Naira Exchange Rates

Why is there a difference between CBN and black market rates?

• The black market dollar to Naira rate reflects real-time demand and supply fluctuations, whereas the CBN rate is regulated to control exchange for approved uses.

Can everyone use the CBN rate?

• No, CBN rates are primarily available for government-approved imports and transactions. Many individuals rely on the black market for convenience and access.

Are Geegpay and Grey safe platforms for exchange?

• Yes, both platforms are well-regulated, providing secure, competitive rates for exchanging foreign currency.

Will the Naira stabilize in the future?

• Future trends depend on economic policies, oil prices, and global market conditions, with currency stability reliant on these factors.

Conclusion on Dollar to Naira Exchange Rate Today

Staying updated on the Dollar to Naira exchange rate black market is essential for business, travel, and investment decisions. Regularly checking black market and CBN rates, as well as online exchange platforms like Geegpay and Grey, can help you make informed decisions in Nigeria’s dynamic forex environment.

Income tax rates play a role in shaping economic sectors of countries, impacting both individual earnings and business investments on the continent of Africa.....Read Full Article>>

In Africa, some nations adopt lower income tax rates as part of their strategies to attract investors, encourage entrepreneurship, and foster economic growth.

These low-tax policies often align with broader efforts to stimulate various sectors of the economy, from tourism to agriculture and beyond. This list highlights African countries with some of the lowest income tax rates, showcasing their economic priorities and the potential benefits for residents and investors alike.

These nations demonstrate how tax policies can serve as tools for driving growth while maintaining fiscal balance. Here’s an overview of five African countries, per The Trading Economics, with some of the lowest income tax rates, providing insight into their economic approaches and fiscal landscapes.
Libya – 10%

Libya boasts the lowest income tax rate in Africa at just 10%. Despite its ongoing economic and political challenges, the country’s minimal tax burden aims to stimulate economic activity, particularly in its vital oil and gas sector, which forms the backbone of its economy.
Mauritius – 15%

Mauritius, a leading financial hub, maintains an income tax rate of 15%. Its investor-friendly policies and vibrant tourism industry make it an attractive destination for international businesses and expatriates, contributing to its stable and growing economy.
Seychelles – 15%

With its 15% income tax rate, Seychelles offers an appealing fiscal environment, particularly for those in the tourism and fisheries industries. As a small island nation, its economic strategy emphasizes sustainability while encouraging foreign investment.
Sudan – 15%

Sudan’s income tax rate of 15% reflects efforts to balance revenue generation with economic development. The government has prioritized agriculture and mining as key growth sectors, with favorable tax policies supporting these industries.
Madagascar – 20%

Madagascar’s income tax rate of 20% supports its efforts to grow the economy through investment in agriculture, mining, and tourism. The nation’s relatively low rate underscores its commitment to fostering an attractive business environment.

Nigeria’s Central Bank Introduces Electronic Foreign Exchange System, Pegs Trading At $100,000 Minimum. According to the apex bank, this development is aimed at ensuring transparency, fairness, and compliance in FX trading.....Read Full Article>>

The Central Bank of Nigeria (CBN) has unveiled guidelines for the Electronic Foreign Exchange Matching System (EFEMS). According to the apex bank, this development is aimed at ensuring transparency, fairness, and compliance in FX trading.

This is also as it set the minimum tradable amount set at $100,000 (hundred thousand dollars.

A statement on the X account of the CBN announced this development.

“The CBN transitions FX trading to Bloomberg BMatch, promising enhanced transparency, fair pricing and operational efficiency, effective December 2, 2024.”

“The Bloomberg BMatch platform will boost market integrity, enhance price discovery, and ensure seamless FX trading among participants” the statement noted.

“The CBN noted that participants must submit daily transactions reports only to the CBN, detailing trade volumes, counterparties and settlement status.” the apex bank noted.

According to the CBN, participation in the EFEMS is limited to authorised dealer banks licensed by the CBN, while other institutions wishing to join the platform must first obtain prior approval.

According to the CBN, the system aims to ensure uniformity and east trading among participants in the trading platform.

The CBN also hopes to use the platform to monitor market performance and data management.

The naira appreciated against the dollar at the official foreign exchange market for the first time since last week.....Read Full Article>>

FMDQ data showed that the naira strengthened to N1,678.93 per dollar on Tuesday from N1,690.37 exchanged on Monday.

This showed that the naira gained N11.77 against the dollar.

DAILY POST reports that this is the first time the naira has appreciated against the dollar at the official market since November 13, 2024, when it closed at N1,645.

Meanwhile, at the black market, the naira remained flat at N1,745 per dollar on Tuesday, the same exchange rate on Monday.

This comes as FX transaction turnover fell to $173.14 million on Monday from $296.63 million recorded on Friday last week, according to FMDQ data.

Dollar- To- Naira Exchange Rate Today After Trump’s Victory....Read Full Article>>

The US dollar soared to unprecedented levels following Donald Trump’ s election as the 47th President of the United States, marking a significant impact on global currency markets. This surge led to a noticeable drop in value for the British pound, euro, and Nigerian naira, which struggled in both official and unofficial markets. The dollar’ s rapid ascent reflects a renewed confidence in the US economy under Trump’ s projected policies, which many believe will foster greater investment returns and economic growth.

Bloomberg reports that the dollar spiked by as much as 1. 7%, marking its highest level since November 2023. This increase represents the dollar’ s strongest rally in four years, fueled by expectations that Trump’ s administration will bring investor- friendly policies. As confidence in the US economy grows, investors are moving their funds into dollars, causing a ripple effect in global markets.
The British pound, for instance, saw a substantial dip of 1. 41% against the dollar on November 6, its lowest point since August. Similarly, the euro fell by 2. 24%, reaching its weakest position since June. This sharp drop reflects investors’ concerns over the stability of the European economy compared to the perceived strength of the US market under Trump’ s leadership.

In Nigeria, the naira continued its decline against the dollar, compounding issues in a foreign exchange market that has already been under pressure. According to FMDQ Securities data, the naira fell to N1, 681. 65 per dollar on Wednesday, down from Tuesday’ s close of N1, 671. 32 per dollar— a 0. 61% decrease. In the black market, the naira also suffered, trading at N1, 735 to the dollar, reflecting a N5 drop from the previous day.
The ongoing depreciation of the naira against the dollar highlights the currency’ s vulnerability in Nigeria’ s fluctuating economy. The country’ s limited dollar supply in the Nigerian Autonomous Foreign Exchange Market (NAFEX) exacerbates this issue. On Wednesday, dollar supplies in the NAFEX window were recorded at $196. 78 million, but this has not been sufficient to stabilize the naira, leading to an unfavorable exchange rate for local businesses and consumers.
The Lagos Chamber of Commerce and Industry (LCCI) has weighed in on the naira’ s situation, expressing optimism that a re- evaluation of Nigeria’ s foreign exchange policy could stabilize the currency. According to LCCI President Gabriel Idahosa, a review of the current free- floating exchange rate by the Central Bank of Nigeria (CBN) could help ease the naira’ s decline. He suggested that a more managed approach might restore confidence in the naira, making it a more attractive currency for investors.
Idahosa’ s perspective aligns with the need for structural economic reforms in Nigeria to reduce dependence on the dollar. By diversifying the economy and strengthening local industries, Nigeria could reduce the impact of external economic shocks. For now, the dollar’ s dominance against the naira underscores the challenges facing the Nigerian economy, which relies heavily on oil exports and is vulnerable to fluctuations in the global energy market.
The dollar’ s surge serves as a reminder of the interconnectedness of global economies, where political shifts in one nation can trigger far- reaching consequences worldwide. As Trump’ s policies unfold, global currency markets are expected to remain volatile, with the US dollar likely to maintain its strong position. However, for economies like Nigeria’ s, this period underscores the urgency of strengthening domestic economic resilience to weather such international financial trends.

Naira slumps against dollar to end on negative note....Read Full Article>>

The Naira depreciated against the dollar on Friday at the foreign exchange market to end the week on a negative note.

FMDQ data showed that the weakened to N1678.87 per dollar on Friday from the N1639.50 exchange rate on Thursday.

This represents a N39.37 depreciation against the dollar compared to N1678.87 exchanged on Thursday.

Meanwhile, at the parallel market, the naira gained N10 to exchange at N1740 per dollar on Friday compared to N1750 recorded the previous day.

The development comes as Foreign Exchange transactions turnover surged astronomically to $1403.76 million on Friday from $244.96 million on Thursday, according to FMDQ data.

DAILY POST reports that in the week under review, the naira recorded mixed sentiments of gains and losses.

This showed Naira had continued to experience fluatuations in the FX marketers despite the Central Bank of Nigeria interventions.

Recall that on Wednesday, CBN authorised commercial, merchant, and non-interest banks in the country to manage tradeable foreign currencies deposited in domiciliary accounts established through the new Foreign Currency Disclosure, Deposit, Repatriation, and Investment Scheme.